Super Investor’s Tips

super investor’s tips

Charlie Munger’s 10 Principles To Get High Investment Returns
  1. Measure risk & invest accordingly.
  2. Independent investing > group investing.
  3. Prepare, study, track & then pull the trigger.
  4. Intellectual humility.
  5. Be rigorous in your analysis of a stock.
  6. Allocate wisely.
  7. Patience – resist the natural human bias to act.
  8. Be decisive when the moment calls.
  9. Change when change is necessary.
  10. One word. Focus.
Benjamin Graham Check List
  1. An earnings-to-price yield of at least twice the AAA bond rate.
  2. P/E ratio less than 40% (over 5 years)
  3. Dividend yield of at least 2/3 the AAA bond yield.
  4. Price below 2/3 of tangible book value per share.
  5. Price below 2/3 of Net Current Asset Value.
  6. Total debt less than book value.
  7. Current ratio greater than 2.
  8. Total debt less than 2 times Net Current Asset Value.
  9. Earnings growth = at least a 7% annual compound rate.
  10. Stability of growth of earnings no more than 2 declines of 5% or more in earnings in the prior 10 years.
Warren Buffett: 8 Mistakes Every Investor Makes
  1. Not pulling the trigger on a stock.
  2. Dancing in & out of stocks.
  3. Buying cheap stocks of poor quality.
  4. Buying airline stocks.
  5. Buying great stocks on a small scale.
  6. Buying stocks high & selling low.
  7. Waiting for a market crash.
  8. Following the madness of crowds.
Ray Dalio: 6 Signs Of A Market Crash On Its Way
  1. Prices are high relative to traditional measures.
  2. Prices are discounting unsustainable conditions.
  3. New buyers have entered the market.
  4. There is broad bullish sentiment.
  5. Purchases are being financed by high leverage.
  6. Buyers/Businesses have extended forward purchases.
Charlie Munger: Advice On Investing
  1. When you see a sale, buy big!
  2. Look to the inefficient markets for stock opportunities.
  3. Think like a business owner.
  4. Don’t over complicate investing.
  5. Don’t be afraid to go back on your investment decisions.
  6. China offers some low price & high quality stocks.
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Super Investor’s Tips Conclusion

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